Chapter 11 - Motivating and Rewarding EmployeesCHAPTER11MOTIVATING AND REWARDING EMPLOYEESLEARNING OUTCOMES After reading this chapter, students should be able to:1. Define and explain motivation.2. Compare and contrast early theories of motivation.3. Compare and contrast contemporary theories of motivation. 4. Discuss current issues in motivating employees.Management MythMyth: Motivation is all about “show me the money.”Truth: There are many options available to managers, aside from money, for improving employee motivation. The secret to being effective is understanding individuals unique needs. Teaching Tips:When students hear that companies like Google give such great benefits, they immediately think, Id like to work there! To get students thinking about how motivation works, ask the following questions:1. Ask students to identify what motivates them. Is it money? Is it time off?2. Do you think that motivation theories and practices that motivate individuals at a U.S. based company would be effective in explaining and generating motivation in other countries? If so, which countries? If not, why? (Most motivation theories are US based and are culture bound)I. WHAT IS MOTIVATION A. Definition1. Many incorrectly view motivation as a personal trait.2. Motivation is the result of the interaction between the individual and the situation. a) Individuals differ in motivational drive.b) An individuals motivation varies from situation to situation.3. Motivation refers to the process by which a persons efforts are energized, directed, and sustained toward attaining a goal. 4. Function of three key elements: energy, direction and persistence. a) The energy element is a measure of intensity. (1) When someone is motivated, he or she puts forth effort and tries hard. (2) Quality and intensity must be measured.b) The effort must be channeled in a direction that benefits the organization.(1) Effort directed toward, and consistent with, the organizations goals.c) Persistence is the 3rd key element.(1) We want employees to persist in putting forth effort to achieve those goals.5. A recent Gallup poll found that a large majority of U.S. employeessome 73 percentare not excited about their work.II FOUR EARLY THEORIES OF MOTIVATION (1950s & 1960s)A. Introduction1. In the 1950s three specific theories were formulated.a) Now considered questionably valid, are probably still the best-known explanations for employee motivation. b) The hierarchy of needs theory.c) Theories X and Y.d) The two-factor theory, motivation-hygiene theory.e) Three needs theory. 2. Although more-valid explanations of motivation have been developed, students should know these theories because:a) They represent the foundation from which contemporary theories grew.b) Practicing managers regularly use these theories and their terminology.B. What Is Maslows Hierarchy of Needs Theory? 1. The best-known theory of motivation.2. Within every human being, there exists a hierarchy of five needs.a) Physiological needs. b) Safety needs. c) Social needs. d) Esteem needs.e) Self-actualization needs.3. As each need is substantially satisfied, the next need becomes dominant. (Exhibit 11-1.) 4. No need is ever fully gratified, a substantially satisfied need no longer motivates. 5. To motivate, you need to understand where that person is in the hierarchy and focus on satisfying needs at or above that level.6. Widely recognized, particularly among practicing managers, its popularity can be attributed to the theorys intuitive logic and ease of understanding. 7. Research does not generally validate the theory. 8. Maslow had no empirical substantiation for his theory, and several studies found no support.C. What Is McGregors Theory X and Theory Y? 1. Douglas McGregor proposed two distinct views of the nature of human beings.a) A basically negative view, labeled Theory X.b) A basically positive view, labeled Theory Y.2. McGregor concluded that a managers view of human nature, and therefore his or her approach to management, is based on a group of assumptions, either positive or negative. 3. Theory X assumes that physiological and safety needs dominate the individual. 4. Theory Y assumes that social and esteem needs are dominant.5. McGregor held to the belief that the assumptions of Theory Y were the most valid.6. There is no evidence to confirm either set of assumptions.D. What Is Herzbergs Two Factor Theory? 1. An individuals attitude toward his or her work can very well determine success or failure.2. Herzberg investigated the question “What do people want from their jobs?” a) Exhibit 11-2 represents Herzbergs findings, also called the Motivation-Hygiene Theory.3. He concluded that certain characteristics were consistently related to job satisfaction (factors on the left side of Exhibit 11-2) and others